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Subcontract the Works

4 replies [Last post]
Thu, 2003-10-09 12:51
Shahzad Munawar
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Being lowest in bid , the Contract was to be awarded to us But surprisingly before issuing NTP, Client insited us to sublet 40% of Whole Work to his favourite Contractor which was to be worked as our Subcontractor in the same Contract.

What conditions should specify us which provide us safeguarde in respect of following:

Who will directly check the quality of that Subcontrcator, we or Client?

Who will give the bonds (PB, MOb. Guranttee) for 40% work, we or that Subcontractor?

who will be responsible for Defect Liability Period for 40% work, we or that subcontractor?

Establish the parameters for mode of payment of 40% subcontracted works?
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Replies

Mon, 2003-12-15 06:45
#1
Anil Gupta
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There can be two ways to it...If your contract document states that particular work need to be carried out by so & so nominated contractor then quality supervison and defect libilty etc becomes libility for subcontractor and client...But being a Main contractor u may have to furnish bonds.
If that is not the case then u can have back to back contract with specified contractor...
I persume its absolutely safe as i presenly i am excuting project whereby airconditioning work is being carried out by nominated subcontractor as per clients reuest and contract conditions..
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Sun, 2003-12-14 08:03
#2
Gilbert Rayco
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We consider this as client preferred sub-contractor,therefore it is treated as "back-to-back" contract aggreement with sub-contractor, meaning sub-contractor must aggree on whatever clauses in the contract with the company.


G.Rayco
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Fri, 2003-12-12 02:49
#3
Christian Adrian ...
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In my opinion, I suggest that you should establish an agreement with that subcontractor as a safeguard to your project.

* Define the scope of works which will be subcontracted as equal to the 40% of the total work.
* Define the conditions of contract which will be used.

hope this helps.

Goodluck!
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Thu, 2003-10-09 13:48
#4
Ronald Winter
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I wouldnt touch that project with a 10-foot pole. In the United States, what you are describing could not be done legally. I question if it is legal in your country as well.

TALK TO A LAWYER (or Solicitor) BEFORE YOU GO ANY FURTHER!

Good Luck!
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